NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$420.7m

Last Updated

2021/04/15 23:58 UTC

Data Sources

Company Financials +

Executive Summary

Regional Management Corp, a diversified consumer finance company, provides various installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other lenders. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Regional Management's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RM is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RM's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

7.8%

RM

0.3%

US Consumer Finance

1.6%

US Market


1 Year Return

199.3%

RM

118.5%

US Consumer Finance

57.5%

US Market

Return vs Industry: RM exceeded the US Consumer Finance industry which returned 112.3% over the past year.

Return vs Market: RM exceeded the US Market which returned 56.6% over the past year.


Shareholder returns

RMIndustryMarket
7 Day7.8%0.3%1.6%
30 Day6.6%1.5%3.4%
90 Day21.8%13.9%8.6%
1 Year203.7%199.3%122.6%118.5%60.3%57.5%
3 Year15.4%13.7%40.0%32.9%62.6%51.9%
5 Year116.9%113.7%112.0%94.2%119.9%95.3%

Long-Term Price Volatility Vs. Market

How volatile is Regional Management's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Regional Management undervalued compared to its fair value and its price relative to the market?

15.74x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RM ($38.49) is trading above our estimate of fair value ($29.51)

Significantly Below Fair Value: RM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RM is poor value based on its PE Ratio (15.7x) compared to the US Consumer Finance industry average (11.8x).

PE vs Market: RM is good value based on its PE Ratio (15.7x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: RM is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: RM is good value based on its PB Ratio (1.5x) compared to the US Consumer Finance industry average (1.9x).


Future Growth

How is Regional Management forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

23.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RM's forecast earnings growth (23.1% per year) is above the savings rate (2%).

Earnings vs Market: RM's earnings (23.1% per year) are forecast to grow faster than the US market (18.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RM's revenue (8.3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: RM's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RM's Return on Equity is forecast to be low in 3 years time (13.8%).


Past Performance

How has Regional Management performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RM has high quality earnings.

Growing Profit Margin: RM's current net profit margins (7.4%) are lower than last year (13%).


Past Earnings Growth Analysis

Earnings Trend: RM's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: RM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RM had negative earnings growth (-40%) over the past year, making it difficult to compare to the Consumer Finance industry average (-21.4%).


Return on Equity

High ROE: RM's Return on Equity (9.8%) is considered low.


Financial Health

How is Regional Management's financial position?


Financial Position Analysis

Short Term Liabilities: RM's short term assets ($1.0B) exceed its short term liabilities ($146.5M).

Long Term Liabilities: RM's short term assets ($1.0B) exceed its long term liabilities ($685.2M).


Debt to Equity History and Analysis

Debt Level: RM's debt to equity ratio (280.1%) is considered high.

Reducing Debt: RM's debt to equity ratio has increased from 199% to 280.1% over the past 5 years.

Debt Coverage: RM's debt is well covered by operating cash flow (22.6%).

Interest Coverage: RM's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Dividend

What is Regional Management current dividend yield, its reliability and sustainability?

2.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RM's dividend (2.08%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: RM's dividend (2.08%) is low compared to the top 25% of dividend payers in the US market (3.49%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether RM's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if RM's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.2%), RM's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RM's dividends in 3 years are forecast to be well covered by earnings (15.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Rob Beck (56 yo)

1.08yrs

Tenure

US$1,104,694

Compensation

Mr. Robert William Beck, also known as Rob, serves as President, Chief Executive Officer and Director at Regional Management Corp. since March 26, 2020 and served as its Executive Vice President and Chief ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD1.10M) is about average for companies of similar size in the US market ($USD1.50M).

Compensation vs Earnings: Insufficient data to compare Rob's compensation with company performance.


Leadership Team

Experienced Management: RM's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: RM's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Regional Management Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Regional Management Corp.
  • Ticker: RM
  • Exchange: NYSE
  • Founded: 1987
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$420.696m
  • Shares outstanding: 10.87m
  • Website: https://www.regionalmanagement.com

Number of Employees


Location

  • Regional Management Corp.
  • 979 Batesville Road
  • Suite B
  • Greer
  • South Carolina
  • 29651
  • United States

Listings


Biography

Regional Management Corp, a diversified consumer finance company, provides various installment loan products primarily to customers with limited access to consumer credit from banks, thrifts, credit card c...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/15 23:58
End of Day Share Price2021/04/15 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.